LES COMPAGNIES ALGÉRIENNES D’ASSURANCES GÈRENT-ELLES LEURS RÉSULTATS COMPTABLES ?

Abstract

This paper investigates the extent to which the biased application of accounting discretion by managers of insurance companies affects the results. We reproduce the methodology of BurgstahleretbDichev (1997) to observe the distribution of results and variation in results using a sample of Algerian insurance companies. This analysis reveals that managers of insurers manage the results to avoid losses on one side and to avoid bed results on the other side.